How to remove an unwanted amount in bank reconciliation without affecting the previous year

Modified on Tue, 17 Sep at 4:55 PM

Scenario:You have an unwanted amount recorded in the bank reconciliation for 2023. To correct this without affecting the previous year's records, you need to handle the adjustment in 2024.

  1. Pass a Journal Entry: Record a journal entry in 2024 to reverse the unwanted amount. For example, if the amount was mistakenly debited in 2023, create a corresponding credit entry in 2024

  2. Reverse the Entry: Ensure the journal entry correctly offsets the unwanted amount from the current period.

This method adjusts the current records without impacting prior financial periods.

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